Algae Biofuel Companies

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GERS: I wish I’d been paying attention.

GreenShift (GERS) is up from .004 to .01 today because its patent on its method to extract more oil from an ethanol production by-product, distillers grain, was approved.

http://finance.yahoo.com/news/GreenShift-Receives-Notice-of-bw-15147307.html?.v=1

As I understand it, this patent doesn’t have anything to do with algae, and I think the algae bioreactor the company licensed from Ohio University may be on the back burner. I’m not clear at this point where algae comes into their plans.

They have an interesting business model around supporting ethanol producers by building corn oil extraction facilities at the ethanol producers’ plants (free to the ethanol producer) and then buying the oil for use in GreenShift's own biodiesel facilities at a price which guarantees a profit. They can also sell the oil. Last December they announced an arrangement to received $38 million to build 12 facilities at ethanol producers' plants and increase their own biodiesel capacity, but it fell through. You can see that it is a capital intensive business model.

Financially, they may be on the brink at this point, so it will be interesting to see if this helps.

We also would need to get clear more clarify on the algae aspect of their business.